Goldman Sachs Sees 32% Upside With $306 Target After Q1 Beat
Goldman Sachs set a $306 price target on TE Connectivity, implying 32.5% upside, following its fiscal Q1 beat of $2.72 EPS versus $2.54 estimate and 22% year-on-year revenue growth to $4.7 billion. CEO Terrence Curtin forecast Q2 adjusted EPS of $2.65 on 13% sales growth, driven by AI-tool demand.
1. Fortune Recognition Reinforces Brand Strength
TE Connectivity has been named to Fortune’s World’s Most Admired Companies list for the ninth consecutive year, reflecting its strong reputation across nine key criteria including innovation, talent management and global impact. The ranking draws on a survey of approximately 15,000 senior executives, directors and analysts who evaluate the largest U.S. and non-U.S. companies by revenue. This consistent recognition underscores TE’s position as a trusted partner in critical sectors such as data centers, energy networks, next-generation transportation and industrial automation.
2. Robust First Quarter Financial Performance
For the fiscal first quarter ended December 26, 2025, TE Connectivity reported net sales of $4.7 billion, a 22% increase on a reported basis and 15% organic growth year-over-year. GAAP diluted earnings per share from continuing operations rose 45% to $2.53, while adjusted EPS increased 33% to $2.72, both exceeding guidance. Adjusted operating margin expanded by 180 basis points to 22.2%, driven by strong contributions from the Industrial and Transportation segments.
3. Record Orders and Cash Generation
TE achieved record quarterly orders of $5.1 billion, up 28% year-over-year and 9% sequentially, highlighting broad demand for its connectivity and sensor solutions. Cash flow from operating activities reached $865 million, with free cash flow of $608 million. The company returned $615 million to shareholders through dividends and share repurchases, reflecting disciplined capital allocation and confidence in its cash-generative business model.
4. Positive Second Quarter Outlook
For the second quarter of fiscal 2026, TE Connectivity expects sales of approximately $4.7 billion, representing reported growth of 13% and organic growth of 6% year-over-year. Adjusted EPS is projected at $2.65, up 20%, while GAAP EPS is anticipated at $2.26. Management cites ongoing investments in AI-enabled data and power connectivity, energy grid hardening and next-generation vehicles as key drivers for sustained double-digit growth in sales and earnings.